Portugal has become an increasingly popular destination for Americans looking to relocate, captivated by its affordable lifestyle, breathtaking landscapes, and inviting climate. Whether you’re considering retirement, a slower pace of life, or a fresh start, Portugal has much to offer. Families with children will especially appreciate the country’s strong emphasis on education, family-friendly communities, and a high level of safety. However, thorough planning is crucial before making the move. Here’s what you need to know!
Why is everyone moving to Portugal?
- Quality of Life:Portugal consistently ranks high in global quality of life indices. It offers a relaxed lifestyle with a strong sense of community, excellent public healthcare, and beautiful landscapes ranging from beaches to mountains. The weather is generally mild, especially in the southern regions like the Algarve.
- Cost of Living:Compared to many US cities, the cost of living in Portugal is quite low. Essentials such as groceries, dining out, and utilities are more affordable, particularly outside Lisbon and Porto. Housing costs, while rising, remain cheaper than in major American cities.
- Safety and Healthcare:Portugal has one of the lowest crime rates in Europe, making it an attractive place for families and retirees. The healthcare system is also highly regarded, offering both public and private options at affordable rates.
Challenges to Consider
- Cultural Differences:The pace of life in Portugal is slower, which can be both a blessing and a challenge. Bureaucracy can take time, and processes such as obtaining licenses or official documents may move slower than you’re used to in the US.
- Weather:While the Algarve is known for its sunshine, regions in northern and inland Portugal can experience cold winters. Houses in these areas are often not equipped with central heating, so it’s important to consider your climate preferences when choosing where to live.
- Language Barrier:While English is widely spoken, Portuguese is the official language. Learning the basics of the language will help you integrate and feel more comfortable with day-to-day activities, especially if you plan to live outside major cities.
Visa Options for US Citizens
If you're wondering, "Do Americans need a visa for Portugal?", the answer is yes—especially if you plan to stay longer than 90 days or aim to obtain residency. One of the most crucial steps in moving to Portugal from the US is securing the right visa. Here’s a breakdown of the main visa options available to US citizens:
1. Family reunification VISA/residence permit
If you are the spouse or partner of a Portuguese or EU citizen, or someone legally residing in Portugal on a visa, you may be eligible for family reunification. Spouses of Portuguese or EU citizens can join their partner in Portugal by submitting a legalized marriage certificate, identification documents, proof of address, and means of subsistence.
Unmarried partners will need to prove the relationship has lasted at least two years, while spouses of non-EU citizens must also provide a criminal record issued within the past 90 days.
2. Golden Visa
The Golden Visa is the most expensive route to Portuguese residency and the slowest. Anyone considering moving to Portugal soon should consider one of the other VISA´s which are faster, easier to obtain and less expensive.
The primary advantage of a Golden Visa and what made it so popular is the minimal stay requirement. You only need to be 7 days a year in Portugal, have legal residency but keep your tax residency elsewhere.
The delays in processing of Golden Visas are also an advantage to people looking primarily for EU citizenship. The delays mean less government fees to pay.
The Golden Visa is therefore a good choice to people who have time and patience and are not rushing to move to Portugal. It remains an attractive path to EU citizenship, but it is not the best path for people seeking immediate residency.
The golden VISA requires making an investment (typically €500,000 in an approved fund) and holding on to it until the end of the process (at least 5 years).
3. D8 Visa (Digital Nomad)
The Digital Nomad VISA (D8) is a good choice for people who work remotely from Portugal and have high enough salary.
The D8 visa is designed for digital nomads and remote workers. This visa type is suitable for those whose work allows them to live anywhere, provided they meet the income requirements and can prove the nature of their remote work. This is an excellent option for individuals employed by foreign companies who wish to enjoy the Portuguese lifestyle.
It is important to pay attention to the fact that the analysis of what is considered income from work and passive income follows the Portuguese law. For example, income from your own LLC will normally be considered passive income for Portuguese VISA purposes even if it is considered self-employment income in the country of source.
Eligibility:You should have proof of an average monthly income from the last three months equivalent to the Portuguese minimum wage multiplied by four (approximately €3,400), plus 50% for the spouse and 30% for each dependent child.
Documentation:Work contract for employees and contract for services or similar evidence for freelancers. You should also include proof that the work can be performed remotely, if applicable.
4. D7 Visa
The Passive Income VISA (D7) is designed for people who have enough passive income to meet the relatively low-income criteria. The requirements of a D7 vary by consulate with each consulate having different criteria and requiring different documents.
The D7 visa caters to individuals with passive income streams, such as retirees or those with significant investments. It is perfect for those who can sustain themselves without needing to engage in active employment in Portugal. This visa provides an excellent opportunity for individuals seeking a relaxed lifestyle in Portugal.
It is important to pay attention to the fact that the analysis of what is considered income from work and passive income follows Portuguese law. For example, income from your own LLC will normally be considered passive income for Portuguese VISA purposes even if it is considered self-employment income in the country of source.
Eligibility: Net regular passive income equivalent to the Portuguese minimum wage (approximately €850), plus 50% for the spouse and 30% for each dependent child.
Examples of Passive Income
- Revenue from movable and immovable property.
- Intellectual or financial assets (dividends, investment portfolio, etc.).
- Retirement income (pension letter, pension statements, tax return with pension information, etc.).
5. Startup Visa
The Startup VISA has been designed to attract people to Portugal who want to open startup companies.
The process of startup qualification is laborious and to those who start a company whilst having a remote job that qualifies for a D8 VISA or enough passive income to qualify for a D7 Visa, we normally suggest using the easier D7/D8 routes. However, those who do not meet the criteria can still utilize the startup Visa route, albeit with a bit more effort.
Eligibility:
- Startup Approval: Endorsement from a Portuguese incubator. At FRESH we have relationships with incubators and could help facilitate the process.
- Business Plan: Must present a viable business plan that demonstrates potential economic, social, or cultural impact.
6. D3 Visa
The D3 visa is ideal for professionals who have secured a high-value job in Portugal. This visa ensures stable employment and sufficient income to support oneself and one's family. It's perfect for individuals in specialized fields who have received job offers in Portugal.
Eligibility:
- Employment Contract: Must have an employment contract in Portugal (or a promissory contract) valid for at least one year.
- Salary: The salary must be at least 1.5 times the Portuguese minimum wage (approximately €1,300), plus 50% for the spouse and 30% for each dependent child.
- Qualifications: Academic and professional qualifications may be requested.
7. D2 Visa
The D2 Visa is a great option for someone who intends to work in Portugal. If you intend to work as a freelancer or incorporate a smaller business in the country, you should choose this route.
The main requirement is to have a freelancer activity opened with the Portuguese Tax Authority (Finanças), or proof of having incorporated a business in the country (no minimum investment amount required). In some cases, a business plan and proof of means of subsistence is enough.
Preparing for the Move
- Housing: Whether renting or buying, be aware of regional variations in housing prices. Lisbon, Porto, and the Algarve tend to have higher costs, while rural areas are more affordable. Alongside price, evaluate the local infrastructure, including transportation and essential services, to ensure the area meets your needs and lifestyle preferences.
- Finances: Before your move, you’ll need to open a Portuguese bank account and obtain a NIF (Portuguese tax number), both of which are essential for managing your finances and daily life in Portugal.
- Healthcare: Portugal’s public healthcare system is accessible to residents, but many expats also opt for private insurance, which remains relatively affordable. Make sure you have a plan in place before you move.
Ready for a New Adventure?
Portugal is a welcoming and rewarding destination for Americans seeking a fresh start. With its appealing Portugal visa options for US citizens, breathtaking landscapes, rich cultural heritage, and affordable cost of living, now is the perfect time to make your move. Whether you’re drawn by the relaxed pace of life, the sunny weather, or the country’s strong sense of community, Portugal has something for everyone.
So, are you ready to embark on this exciting journey? Start planning your move today and begin your new chapter in one of Europe’s most beautiful and vibrant countries!
